Sam Chandan Sam Chandan

WASHINGTON, DC—Last December a triumvirate of the federal banking regulators — the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency — issued a not-so-subtle reminder to banks: Existing guidance contains “prudent risk-management practices” that financial institutions should apply in the management of their commercial real estate lending activity. “Financial institutions should implement risk-management practices and maintain capital levels commensurate with the level and nature of their CRE concentration risk,” the interagency statement said.

The statement was released in the middle of December, too late to much impact on CRE lending volumes for the fourth quarter.

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